How to File and Save Money for 1099 Employees

Are you freelancing or working as a contractor? If so, more than likely you’re a 1099 employee. What makes this a little different than a salaried employee is the form you will receive from all the companies you work for. A 1099 will have your earnings listed, but one thing to note is that if you worked for multiple companies in the past year, you need to collect the form from ALL companies.

Since 1099 employees are paid directly and tax-free, depending on the grossed income accumulated, you could have to PAY a decent amount in taxes that your W2 friends have been paying all year. HOWEVER, one way to save yourself money is to document any work related expenses, i.e. internet if you work from home, gas if you had to travel for work, etc. A CPA can help you navigate potential ways to save and documents necessary to do so because no one wants to pay a large lump sum while others are getting tax returns.